Musk’s SpaceX in talks to borrow US$40 billion to buy Nvidia chips
Firms are investing and borrowing billions to build and lease data centres that power AI systems
Elon Musk's SpaceX is in negotiations with banks and investors to secure US$40 billion in debt financing, with the aim of purchasing Nvidia chips, according to sources familiar with the matter. The funding discussions are still in the early stages and may conclude without a finalized agreement, the sources added. The financial package includes approximately US$10 billion in bank loans and US$30 billion in investment-grade debt, as reported by the Financial Times based on unnamed sources.
Apollo Global Management is leading the financing efforts, with the anticipated completion of the deal in 2027. The expansion of computing capacity, driven by tech companies and AI model developers, has resulted in soaring costs for essential resources such as land, chips, and power generation equipment. While SpaceX shares declined temporarily following the report, Nvidia's stock experienced a slight increase.
In September, Musk disclosed that his xAI business may expand its AI computing cluster, Colossus 2, by more than doubling its current Nvidia chip count by the end of 2026.
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